Addictive foods

Food addiction has two Macroeconomic impacts: the share price of the purveyors of ultra-processed foods and the extremely high cost of the health burden of ultra-processed foods.

The gorgeous blonde beauty-contestant daughter of a friend got a job with PepsiCo. I congratulated her but didn’t mention that few of the heavy consumers of Pepsi’s products eventually resemble this lovely young woman. I can’t safely eat any of Pepsi’s products except their bottled water – and I avoid bottled water to avoid adding to the problem of single-use plastics.

PEP, KO, MCD and YUM all have P/E ratios over 20. Their prices are back to pre-pandemic levels.

https://www.google.com/search?client=firefox-b-1-d&q=pepsi+stock

https://www.google.com/search?q=coca+cola+stock

https://www.google.com/search?q=mcd+stock

https://www.google.com/search?client=firefox-b-1-d&q=yum+stock+price

Unhealthy Foods Aren’t Just Bad For You, They May Also Be Addictive

Food researchers debate whether highly processed foods like potato chips and ice cream are addictive, triggering our brains to overeat.

Anahad O’Connor

By Anahad O’Connor

Feb. 18, 2021


In one study involving more than 500 people, Ashley Gearhardt, associate professor in the psychology department at the University of Michigan and her colleagues found that certain foods were especially likely to elicit “addictive-like” eating behaviors, such as intense cravings, a loss of control, and an inability to cut back despite experiencing harmful consequences and a strong desire to stop eating them.

At the top of the list were pizza, chocolate, potato chips, cookies, ice cream, French fries and cheeseburgers. Dr. Gearhardt has found in her research that these highly processed foods share much in common with addictive substances. Like cigarettes and cocaine, their ingredients are derived from naturally occurring plants and foods that are stripped of components that slow their absorption, such as fiber, water and protein. Then their most pleasurable ingredients are refined and processed into products that are rapidly absorbed into the bloodstream, enhancing their ability to light up regions of the brain that regulate reward, emotion and motivation…

A common denominator among the most irresistible ultra-processed foods is that they contain large amounts of fat and refined carbohydrates, a potent combination that is rarely seen together in naturally occurring foods that humans evolved to eat…[end quote]

Is now a good time to buy these stocks despite their rich valuations?

Statistics from a survey conducted by the National Center for Health Statistics from Center for Disease Control shows that a little over one-third (36.6%) of adults in America eat it on any given day. That’s about 84.8 million adults eating fast food every day! 83% of American families eat at fast food restaurants at least once a week.

Younger people are more likely to eat fast food than older people, possibly because schools no longer have cooking classes as they did when I was a teenager. Surprisingly, the numbers show that those with higher income tend to consume more fast food than those with lower incomes. (I can’t imagine why except that maybe the poor are eating pasta and beans and the middle class are finding even cheap fast food more expensive than supermarket processed food?

The stock charts of Campbell Soup (CPB) and Mondelez (MDLZ which makes Oreos) resemble the other junk food manufacturers – high P/E ratios with rising stock price.

Wendy

4 Likes

I am shopping more at Whole Foods Market but the prices are high.

Costco is a much better deal and not necessarily cheap cheap processed foods but the food is fattier and lower quality than WFM.

Trader Joes is in trouble for their chocolate. Getting sued.

I mixed up those three markets for my shopping twice a week. Sometimes a bit of Stop and Shop but I do not like that store at all. It is owned by Ahold.

MCD’s stock has declined a bit lately. I took another look to see how deeply rooted their stealth liquidation has been.

Don Thompson because CEO of MCD in July 2012. Shareholder equity was $15,293B that year, 2013 equity $16.009B, 2014 equity $12.853B. Thompson resigned in early 15, due to a 4.1% drop in store traffic.

Steve Easterbrook, a beancounter from Price Waterhouse, was the next CEO. 2015 equity $7.088B, 2016 equity ($2.204B), 2017 equity ($3.268B), 2018 equity ($6.258B), 2019 equity ($8.210B) Easterbrook was tossed by the BoD in late 19 for boinking people in the office. The company has since clawed back over $100M for his scummy behavior.

Chris Kempczinski became the next, and current CEO. His major at Duke seems to be a deep, dark, secret as neither the company bio, Linkedin, nor Wiki says what it was. He also has an MBA from Harvard, and a background in brand and product management, starting at P&G. His first year at MCD, 2020, showed an improvement in equity, to ($7.825B). 21 showed further improvement to ($4.601B). Is he digging the company out of it’s hole? Q1 2022, equity declined to ($5.991B). Q2, further decline to ($6.369B), Q3 further decline to ($6.566B). Seems someone had a talk with him about the virtues of continuing Easterbrook’s stealth liquidation.

Steve

3 Likes

I’m not sure it’s that much of a secret: economics. At least this major makes sense, more than a lot of majors people have in businesses they end up in, and probably prepped him a little bit when he went on to Harvard Business School.

https://www.zoominfo.com/p/Chris-Kempczinski/651586283

It’s likely not something that is emphasized in his bio since he is quite a distance away from undergraduate at this point. Side note: he graduated in 1991, the year Coach K won his first national title.

Pete

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